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Tips for Reading Odds
To comprehend betting chances, you don't need to be an expert in arithmetic. To get the most of your bets however, you must comprehend the probability chances and what they mean.
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Some of the top tips for how to read odds are:​
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Calculating implied probability
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Value bets
Calculating Implied Probability
As already established in previous discussions, reading odds does not require exceptional arithmetic skills. However, you can determine how probable it is that an event will result in a victory or a loss by computing the implied probability of the occurrence.
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Using American/Money Line odds for this example, the equation for the team with positive odds plays out like this -
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Implied Probability = 100 / (Positive Odds + 100)
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Using the Seahawks example from our page covering Reading and Understanding Odds, the Seahawks carried odds of +685.
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Implied Probability = 100 / (685 + 100)
Implied Probability = 100 / 785
Implied Probability = 0.13
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This means the implied probability of the Seahawks winning the game is roughly 13%.
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Looking at the other side of the equation, here is the formula for the team with negative odds -
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Implied Probability = Negative Odds / (Negative Odds - 100)
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Using the 49ers example from the page covering Reading and Understanding Odds, the 49ers carried odds of -725.
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Implied Probability = -725 / (-725 - 100)
Implied Probability = -725 / -825
Implied Probability = 0.88
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This means the implied probability of the 49ers winning the game is roughly 88%.
Value Bets
Identifying a bet's worth is crucial for long-term betting success. After reading the odds and determining the implied probability, we can now determine whether there is value in the teams.
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You should bet on the Seahawks if you believe they have a higher chance of winning than their 13 percent chance, unless you think the 49ers have an even better chance of winning against their 88 percent probability, at which point you should wager on the 49ers.
